Are you trying to decide whether buying silver bullion as an investment is a good investment or not?
Just like gold, silver has become a key investment to safeguard investors’ wealth and retirement savings over the past decade.
With an existing inflation rate of over 7%, it’s now more important than ever to move your money to physical assets that will not tank when the dollar does.
So, in this post, we will explain why buying silver bullion as an investment is a great idea. And why any investor should add this precious metal to their portfolio.
Image Source: Goldco
Let us start by answering the question of whether silver is worth buying as an investment.
Is Silver Worth Buying As An Investment?
Yes, silver is worth buying as an investment and can help you diversify and skyrocket your portfolio.
Investing in silver is growing in popularity, and there are a number of reasons for that, including:
- The price of silver will continue to rise
- Silver is more affordable than gold
- The growing industrial usage of silver makes it a valuable asset to hold
- Silver correlates positively with inflation
- Demand for silver as an investment continues to grow
- Silver’s supply is declining, which could drive the silver price up significantly
- Its tangible nature offers safety and security
- Silver is real money and a physical asset you can hold
Silver Preserves Wealth And Hedges Against Inflation
In contrast to stocks that historically offer the highest returns, precious metals are great at preserving wealth over longer durations and tend to keep their value over inflation.
Besides, investing large parts of an investment portfolio in stocks is not recommended for anyone who wants to withdraw their money in less than five years.
More specifically, silver is an excellent investment for people who want to protect their wealth with a physical asset that never loses its value.
Unlike paper investments, gold and silver are seen as safe haven for investment during market instability and provide financial insurance.
In addition, because silver is more affordable than gold, it is a good alternative for people that do not want to spend as much money or may not have as much to invest.
Now, that you know why it is worth investing in silver, let us take a look whether you can make money investing in silver next.
Can You Make Money Investing In Silver?
Yes, you can make great gains by investing in silver. According to financial adviser and journalist, Avi Gilburt, silver will get to $1,000 via a long-term bull run.
Avi means that due to the existing 2021-2022 financial crisis, both gold and silver prices are expected to rise but silver even more. This, since the price of silver, is historically more mobile than the price of gold. Besides, silver’s price moves quickly, so in bull markets, it will soar much further and faster than gold.
1. Shortages In Silver Pushes Prices Up
The increasing interest in silver coins and bars has led to shortages around the world.
Generally, it has become a lot harder to find silver bullion, which will lead to rising silver prices and skyrocketing portfolio growth.
On top of that, COVID-19 has also been a major factor in slowing down or stopping the production of silver coins at various mints.
And the next year, we could see even more shortages in silver coins. This means that both the silver price and the premiums paid on silver coins are likely to rise.
2. Industrial Demand For Silver Is Growing
Did you know that silver is the key metal in the production of solar panels?
And the demand for solar power is expected to increase 20-fold by 2030, making silver a valuable asset.
Especially, when the focus on renewable energy is increasing day by day.
All in all, the industrial demand for silver will always be high.
For instance, in-demand consumer products such as cell phones, laptops, cameras, mirrors, batteries, and monitors all contain silver.
3. Silver Is More Affordable
The affordability of silver makes it one of the most undervalued assets on the market.
Not only is this metal more affordable for the average person, but as a precious metal, it will help maintain your standard of living as good as gold.
Besides, with a legit bullion dealer, like Goldco or Augusta Precious Metals, you can always liquidate and get the best price for your silver or gold bullion. They offer a buy-back program if you want to sell your metals.
If you are still not convinced if silver is a good investment for you, check out 10 reasons why you should invest in silver.
With that being said, let us look at what affects silver prices next.
What Affects Silver Prices?
First of all, what affects silver prices is the continuously growing market and demand for silver.
In fact, the silver market is estimated to be in the hundreds of billions of dollars.
Second, only a portion of the world’s global silver supply is turned into coins and bars.
Much of the silver supply continues to be used in industries, such as:
- Solar panels
- Food processing
The potential for a shortage of metal comes from increased industrial consumption, mint stoppages because of COVID, and investors that are looking for ways to safeguard their money.
So, these factors combined are putting pressure on the global silver supply and driving silver prices.
Silver IRA: The Best Way To Invest In Silver
The best way to make money investing in silver is to open a silver IRA or a precious metals IRA.
When investing in a precious metals IRA, you can choose to only invest in silver or combine gold and silver and other precious metals.
Best of all, you can take advantage of a secret IRS tax loophole, meaning that you can invest after-tax dollars, accrue gains tax-free, and take distributions tax-free as long as you are 59½ years or older.
Also, if you open a precious metals IRA with Goldco, you’ll get up to $10,000 in FREE silver!
Who can beat that?!
So, if you’re looking to diversify your portfolio, protect and grow your wealth, investing in silver could be one of the best ways to do just that.
Especially, with the economy on the verge of a double-dip recession, where your paper assets may lose their value.
The future is bright for silver, hence why many investors are getting their hands on this asset while they still can.
So, what are you waiting for?
Request the FREE precious metals IRA guide today, and learn everything you need to know about investing in gold and silver!